Academia Sinica announced on Monday that the economic growth rate forecast for 2024 has been revised upward and they are projecting a 3.10% growth rate for 2025.
According to the research institute’s findings, global commodity trade increased along with the expansion of AI application. However, due to variations in the pace of recovery among different manufacturing industries, the overall global economy has grown slowly. Demand for emerging technology has boosted domestic exports, causing investment growth in the second half of the year to exceed expectations. Therefore, the 2024 economic growth rate is expected to be revised to 4.23%.
As for 2025, Academia Sinica indicated that increased demand for electronics, high performance computing, and artificial intelligence, as well as changes in Taiwan’s economic and trade policies, will continue to drive investment and economic growth. Domestic demand is the main driving force for economic growth and this growth will persist through next year, they said.
Academia Sinica economics researcher Lin Chang-Ching (林常青) said that the main variables affecting economic growth trends throughout 2025 are the rise of U.S. unilateralism and challenges brought about by China’s economic recovery. In the upcoming year, Lin said, steadily developing Taiwan’s hardware supply chain for AI-related applications is a priority.
Academia Sinica also explained that this year’s increased electricity costs and upcoming increases in basic wages and salaries for certain sectors have yet to reflect in their data. The consumer price index is estimated to be 2.02% for the year of 2025, with consumers expecting prices to further inflate.